Banking Terms starting with alphabet N

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Alphabetical List


Net interest margin measures the success of the bank's decision taken in the area of investment as in case of debt situation. If the decision of the bank has not been fruitful, it denotes negative value. Negative value reflects that the interest expenses of the bank were higher than the returns coming from its investments.


The apex Indian bank i.e. Reserve Bank of India had issued an Annual Policy Statement 2005-2006 urging banks to take a look at their present practices to enable disadvantaged sections of the people to have an easy access to the banking services. These accounts witness limited number of transactions. A detailed record of the nature and number of such transactions is provided to the customers beforehand in a precise manner. Nowadays, almost every bank provides no-frills account to the customers. The central bank of India has made Know Your Customer (KYC) norms easy to facilitate the opening of a no-frills account.


Negotiable Instruments Act has been implemented with an aim to infuse faith in the usefulness of banking operations and trustworthiness in transacting business done through negotiable instruments. Under Section 138 of the Negotiable Instruments ACT, 1881, a person is prevented from drawing a cheque, if he/she doesn't have adequate cash amount in the bank account. It also encourages the concerned person such as holder/payee to take action against it.


The loans that can lead to a case of default are declared as Non-performing assets (NPAs). If a person does not pay interest or principal amount for a period of 90 days, the loan is termed as a non-performing asset.